Indonesia’s banks have had an overall weaker showing in the Top 1000 World Banks 2023 ranking, with declines in Tier 1 capital resulting in lower positions. Despite the country recording healthy gross domestic product growth of 5.3% in 2022, with strong exports and consumer spending, its banks have not seen this translate into improved Top 1000 positions.
The biggest bank in the country by Tier 1 capital, Bank Rakyat Indonesia (BRI), saw a slight fall in the ranking, dropping five places to 109th spot, as a result of a 6.69% decline in core capital. BRI is the highest-placed Indonesian bank in the Asia-Pacific (excluding China and Japan) ranking, in 18th position.
Bank Central Asia (BCA), the third-largest Indonesian lender, is crowned the best performer among the five largest banks in the country in 2023. The bank has topped the table for soundness, as well as placing second in the other categories except for growth, where it ranks third. Due to a 1.74% decline in Tier 1 capital, BCA has slipped three places in the Top 1000 ranking to 136th. However, the lender increased its profits by 17.86% and has the highest return on assets (ROA) ratio of 3.1%.
BRI has placed second in the overall best-performing bank table. It has taken first place for profitability, operational efficiency, return on risk and liquidity, but was let down by soundness and leverage, where it placed fourth, and asset quality, where it came in fifth.
Bank Mandiri Persero, which takes over as the country’s second-largest lender, came first for growth in the best-performing table, thanks to a 3.3% increase in Tier 1 capital, as well as first for asset quality. The bank recorded one of the highest return on capital ratios 20.13% among its compatriots (second to Bank Mega’s 20.32%) and a solid ROA of 2.26%.
There are 27 Indonesian banks in the country ranking, two more than in 2022. However, 15 of these banks are foreign-owned subsidiaries, so only the remaining 12 local banks are included in the main Top 1000 ranking.
Two Indonesian banks joined the Top 1000 ranking in 2023: Bank Jatim and Bank Jateng, which have taken 943rd and 988th places, respectively. While the latter is the smallest of the Indonesian banks, with $586m in Tier 1, Bank Jatim, with core capital of $658m, jumps in ahead of local lenders Bank Mayapada Internasional and Bank DKI.
